Which of the following statements concerning the credit for child and dependent care expenses is not correct for 2022? A. If a taxpayer is a full-time student with no earned income, no credit for child and dependent care expenses can be claimed. B. A taxpayer is not allowed both a deduction as a medical expense and the credit for child and dependent care expenses on the same amount. C. A taxpayer is not allowed both an exclusion from income and the credit for child and dependent care expenses on the same amount. D. If a taxpayer’s adjusted gross income is over $43,000, the rate for the credit for child and dependent care expenses is 20%.

Which of the following statements concerning the credit for child and dependent care expenses is not correct for 2022? A. If a taxpayer is a full-time student with no earned income, no credit for child and dependent care expenses can be claimed. B. A taxpayer is not allowed both a deduction as a medical expense and the credit for child and dependent care expenses on the same amount. C. A taxpayer is not allowed both an exclusion from income and the credit for child and dependent care expenses on the same amount. D. If a taxpayer’s adjusted gross income is over $43,000, the rate for the credit for child and dependent care expenses is 20%.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter7: Tax Credits

Section: Chapter Questions

Problem 5MCQ: Which of the following is not a requirement to receive the premium tax credit for health care?...

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Which of the following statements is false regarding the earned income credit (EIC)? Multiple Choice If certain requirements are met, a taxpayer may receive advance payments of EIC. Maximum amount of the credit depends on the earned income and number of children. A taxpayer without children cannot claim the credit. The credit is refundable.
A self-employed taxpayer may be eligible to deduct amounts paid for medical insurance for themselves and for their families, as long as neither they nor their spouse were eligible for employer-sponsored health insurance. To claim this deduction, a qualifying taxpayer should: 1 Claim a nonrefundable tax credit based on the cost of the insurance. 2 Deduct the cost of the health insurance premiums as a business expense on Schedule C. 3 Only deduct the health insurance costs on Schedule A if they itemize their deductions. 4 Report the health insurance costs, up to the amount of net business income, as an adjustment to income on Schedule 1 and on Form 1040.
One of the following is not a requisite for deduction of Premium Payments on Hospitalization and Insurance: A. The taxpayer must be an individual taxpayer B. The premium payment is for health and/or hospitalization insurance of the taxpayer and his family C. The taxpayer's family has a gross income of not more than P 250,000 for the taxable year D. The individual taxpayer is a pure compensation income earner
With respect to spousal and child support, which of the following statements is NOT correct. A) Any amounts that are not specifically identified in the agreement as spousal support will be considered child support. B) An amount qualifies as a support payment only if it is payable or receivable on a periodic basis. C) The recipient of child support payments will include this amount in income. D) Deductible support payments reduce the taxpayer's Earned Income for RRSP purposes.
Which of the following statements is false regarding an employee's contribution into a 401(k) tax deferred retirement account? a.The employee's contributions are not subject to FICA tax. b.Upon retirement, payments are then subject to federal income tax. c.Upon retirement, the employee will receive their contributions back in the form of regular payments. d.The employee may be in a lower tax bracket when the retirement income is taxed. e.None of these statements are correct.
The use of the earned income credit could result in a taxpayer receiving a refund even though the taxpayer has not paid any income taxes.TrueFalse
When determining earnings subject to SE tax, the taxpayer may want to use one of the optional methods whether if they have a small net profit or loss and which of the following conditions applies A. They are eligible to receive the Additional Child Tax Credit B. They can claim a Credit for Dependent or Child Care Expenses C. Taxpayer wants to receive a Credit for Social Security Benefit Coverage D. All of the above
24. Which of the following, if any, correctly describes the earned income credit? a. Would be available regardless of the amount of the taxpayer's adjusted gross income. b. Is not available to a surviving spouse. c. Requires a taxpayer to have a qualifying child to take advantage of the credit. d. Is a refundable credit.
In 2021, the shared responsibility payment: Applies to uninsured taxpayers whose modified adjusted gross income exceeds the threshold amount for their age and filing status. May reduce the amount of the Premium Tax Credit. Applies only to nonresident aliens who received health insurance through the Marketplace. Does not apply.
Please use the tables below to help you calculate 2023 tax liability (or refund) in each of the following independent scenarios. Please assume that a taxpayer who is eligible for the Earned Income Tax Credit will be able to take the maximum credit amount, even if the taxpayer's AGI puts her in the phaseout range. In other words, for purposes of this problem only, a taxpayer is either not eligible for the credit or eligible for the maximum credit. Also, please use only the two credits below in your calculation. No. of Children 0 1 2 3 or more Credit Rate 50% of your contribution 20% of your contribution 10% of your contribution 0% of your contribution Earned Income Credit (for Single Taxpayers & Head of Household) Tax Year 2023 Maximum Credit Income at Max Credit $7,840 $11,750 Married Filing Jointly AGI not more than $43,500 $43,501 - $47,500 $47,501 - $73,000 more than $73,000 $600 $3,995 $6,604 $7,430 Taxpayers with investment income of more than $11,000 are not eligible for the…
n situations where there is no requirement for the taxpayer to provide documentation to substantiate their Earned Income Credit claim, tax preparers can protect and prepare the taxpayer by advising them on the documentation that will substantiate their claim. Specifically, which form is most helpful to substantiate this type of claim? Form 886-DEP. Form 886-HOH. Form 886-EIC. Form 8887.
Greg has self-employment income in 2021 of $96,000. The self-employment tax is: (round to the nearest dollar)